6.
E-filling
6.1Introduction
E-filing is a new service provided by the Intellectual Property Office, India in order to enable customers to apply for a patent on-line allowing from the Users browser for the User to Complete an electronic application form Provide the associated attachments Complete the necessary payment details
6.2Benefits of E-Filing
If you file your Patent application on-line, you will: Receive a Patent application number immediately On-line verification to assure error-free filing and obtain your filing date Speed up the registration process Print the completed application data and receive fee acknowledgement Save the data locally in your PC Be able to recall your contact details for subsequent applications
6.3Procedures of E-filling
In order to submit an electronic application form, following steps are needed: Acquire Class 3 Digital Signatures either from (n) Code Solutions, Tata Consultancy Services (TCS) & Safe Script. New users (Applicants, Agents or Attorneys), can complete online registration by providing Digital Signature details to get a User ID and Password for using the e-Filing System of Indian Patent Office (IPO). Secure Login into the system with created User Id and the Password. Download the Client Software for preparing Patent Application Offline with required documents and Digitally Sign it for uploading on IPO Server. Fill Patent Application offline and generate an XML file using Client Software. After creating application (XML) file offline, Digitally Sign the XML file (Max. file size permitted 5MB) for uploading on to the IPO Server. Login into e-Patent portal(http://ipindia.gov.in) for uploading Application XML file on IPO Server. Upload & Submit Digitally Signed XML file to IPO Server. Process Application for EFT (Electronic Fund Transfer) using State Bank of India (SBI) & Axis Bank Payment Gateways. Review Application Status on e-Patent Portal. On successful EFT acknowledgement details would be displayed/ generated. Print Acknowledgement. Click on "Print" to generate printout of acknowledgement.
6.4Process of E-filling
6.5E-Filing Process At a glance
Select appropriate type of Return Form. Download Return Preparation Software for selected Return Form. Fill your return offline and generate a XML file. Register and create a user id/password. Login and click on relevant form on left panel and select "Submit Return". Browse to select XML file and click on "Upload" button. On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form. In case the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. Assessee may take a printout of the Acknowledgement for his record.
6.6Merits and Demerits
E-filing provides many advantages to taxpayers. Quick processing means refunds are received much sooner, particularly if they are deposited directly into a bank account. Errors are reduced at both ends and e-tax preparation software can sometimes suggest deductions, review returns for data that could lead to an audit, or even download W-2 and 1099 forms. Federal and state returns can sometimes be calculated together. However, e-filing has disadvantages as well. About one-fifth of e-filers had their esignatures rejected for some reason in 2001. Between the cost of software and finding an authorized agent, e-filing can cost more than mailing a traditional paper return. About 40 forms were not available in eversions as of 2001, according to the IRS, and some 10 percent of taxpayers were still not eligible to file electronically. However, perhaps the most serious downside of e-filing for most taxpayers was the question of the security of their personal and tax data. These concerns were exacerbated by a 2001 General Accounting Office report that uncovered lax security in the IRS's computer systems. Although no evidence of hacking into the system was uncovered, GAO investigators were able to gain unauthorized access to computers containing taxpayer files. Following the report, the IRS took steps to improve its computer security. Additional security concerns were raised by a proposed IRS plan to increase the number of e-filers. In return for distributing free tax software to consumers, the IRS considered sharing taxpayer information with private firms. The plan eventually was scrapped. However, despite such concerns, the continuing expansion of personal computers and Internet access will make the growth of electronic tax returns inevitable.
6.7Returns
This module helps the dealer to enter the return details periodically. Tax calculation based on turn over details are calculated & verified & at the entry stage itself, an alert will be generated to correct in case of mistakes. This module has the provision to enter the corrected / revised return details. This option has the following options Filing of Returns Submit Print
Filing of Returns provides the dealer to file VAT / COT / CST / TDS Returns depending on the type of Dealer
6.7.1Impact of Errors made while filing returns
Returns can be classified as defective u/s 139 (9) and in some scenarios the return can be declared in valid / Non Est. ITD is not introducing this concept to cover certain types of errors in order to prevent future grievances Computation Errors In electronic filing it has been noticed that most of the errors are due to data errors as filed by the assesse this includes non-filling of key schedules, wrong details etc resulting in rectification requests etc. which delay closure of processing Inability to pay refunds to the assesse
6.7.2Key rules to be followed to ensure trouble free processing
Once E filing is done (without digital signature), ITR V needs to be sent in time to CPC. In case ITR V acknowledgement is not received within reasonable time, the assesses may call up the CPC call centre to verify status Nearly 10% of assesses have failed to send the ITR V to CPC after E filing Assessee needs to fill his email address, mobile no correctly to ensure appropriate communication from the Income Tax Department. The use of the Tax practioner/CAs email address may not be appropriate The assesses should make sure the correct (latest) address, bank account, MICR no. is filled The assesses should verify tax credits available in Form 26AS/NSDL websites. Mismatches are the single largest cause of incorrect tax computation. Non credits may be taken up with the TDS detector and/or the banker as soon as they are noticed
6.8Common Errors noticed in E filed rectification requests
After filing rectification application with change in bank details- assesse is not sending the Response sheet along with cancelled cheque within stipulated time. For change of bank details for refund failure, there is no need to file rectification application. Only response sheet will suffice. Many assesse file xml for rectification without any correction leading to non-rectification of the case Assesses having paid demands are filing for rectification to get a nil demand rectification order. This is not necessary. Rectification applications where total income is changed will be rejected. In case of change in total income a revised return needs to be filed. Rectification requests will be auto-rejected when an earlier rectification request is under process. In such case no specific reason is given except stating that an earlier rejection request is already under consideration.
6.9 DOS AND DONTS
Capital Gains:
Deemed Capital Gains arising out of Schedule deprecation should be considered by the assesses in schedule CG. Non filing of full value of consideration or filling only expenditure under various sub categories of CG leads to incorrect computation of income. Filling of only cost of acquisition also leads to incorrect computation. The quarterly breakup of capital gains in the CG schedule should be post set off of all losses. Filling of accurate quarterly breakup is necessary for computation of interest under 234C. Correct section codes should be used depending upon the type of capital gains income in the SI schedule. Exempt LTCG should not be entered in CG schedule as well as in BTI, it has to be mentioned in Schedule EI
